SEC expected to cap 12(b)-1 fees
Securities regulators are moving closer to proposing limits on the 12(b)-1 fees that investors pay to mutual funds, according to an InvestmentNews report.
Securities regulators are moving closer to proposing limits on the 12(b)-1 fees that investors pay to mutual funds, according to an InvestmentNews report. The SEC has been reviewing the use of such marketing and sales fees for the past year and has indicated its hope to cap those fees. SEC Chairman Christopher Cox previously has questioned the use of 12(b)-1 fees to compensate brokers, which he says is a departure from the fees’ original intent. SEC officials have said they expect to unveil recommendations by this summer.
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